For Chinese Steel, Flatter Is Better

After a harsh winter, China's steel industry has to brace for a tough year ahead. But there is warmth for those parts of the sector geared toward consumers.

China's top steelmakers recorded a combined loss of $368 million in the first quarter, the worst three-month period since 2000, according to the China Iron and Steel Association. Blame it on fewer new high-rises and roads. These consume 56% of the metal across China, says Sanford...